Shares in Pendragon have experienced a boost after the company announced the receipt of a fresh unsolicited proposal from Hedin Mobility Group and auto-retail services provider PAG International. The new proposal amounts to a significant £448 million ($550.9 million).
As of 1511 GMT, Pendragon shares were up by 3.30 pence, or 12%, reaching 30.30 pence.
Pendragon, a motor dealership based in the UK, revealed on Friday that its board will carefully consider the revised proposal, which offers 32 pence per share for its entire share capital consisting of roughly 1.40 billion shares. The company will also consult with its shareholders during this process.
It's worth noting that the revised proposal still remains subject to various preconditions, including but not limited to antitrust approvals and the completion of due diligence.
Just a few days ago, Pendragon had announced its intention to sell its entire UK motor and leasing business to Lithia Motors for an impressive £250 million. Alongside this sale, Pendragon plans to change its name and initiate a strategic partnership with Lithia.
Pendragon has also confirmed that, as per the binding legal agreement it entered into with Lithia Motors, a shareholder meeting is required to fulfill the approval process for the Lithia transaction. This meeting is set to take place on October 6.
Back on September 20, Pendragon had rejected a takeover bid from Hedin Mobility and PAG International, who were offering a lower rate of 28 pence per share.
However, it is important to note that there are no certainties regarding the potential for a firm offer or the terms thereof at this time. Shareholders are advised to refrain from taking any action until further notice.
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